What is the yield on one-year treasury securities

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Question: The real risk-free rate of interest is 2%. Inflation is expected to be 5% this year and 6% during the next 2 years. Assume that the maturity risk premiums is zero. What is the yield on 1-year treasury securities? Write your answer as a percent (do not type the % character - if your answer is 8.8% write 8.8 in the answer). The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM132069780

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